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Nestle to invest 60m Swiss francs in new Russian plant

Nestle, a Swiss food and beverage company, has said that it will invest 60m Swiss francs to establish a new plant in Russia. The new plant, which will be located at a greenfield site in the Vyazniki district of the Vladimir region, will produce a range of culinary products under the Maggi brand.

The new Vladimir plant marks the 14th production site under Nestle Russia.

The company said that post completion of the first phase of construction in the third quarter of 2011, the new plant will produce nearly 30,000 tonnes of Maggi products to meet the demand for these products in Russia and CIS countries.

After the construction is complete, Nestle will transfer its culinary production out of its existing site located in the town of Zhukovsky, Moscow, to the newly-constructed Vladimir plant, which will then be fully focused on ice-cream production.

The company also intends to transfer its ice-cream production lines from the Nestle Kuban factory located in Timashevsk, in the Krasnodar region, to the Nestle factory in Zhukovsky. All permanent staff of Nestle Kuban ice cream division will continue working at the factory due to the expansion of coffee production in launching its freeze-dry technology in 2011.

Part of the culinary staff of Zhukovsky factory will be transferred to the ice cream production, while others will be offered other job opportunities at the new plant in Vladimir region and the other branches of Nestle Russia.

Stefan De Loecker, CEO of Nestle Russia, said: "We believe in Russia's huge long-term potential, which is why we are continuing with Nestle investments into the development of local production facilities.

"With the new factory in Vladimir region, Nestle opens a new chapter of Maggi business and sets a new standard for technology in culinary production in Russia."